Ask any employee about the most essential aspect of having a job, and many might say their paycheck. In fact, salary issues are so critical that many employees might be willing to jump ship over low pay. Research finds that most employees say not getting paid enough is what’s most likely to prompt them to look for a new job.
We’ll take an in-depth look at what drives good employees to other organizations and offer advice for retaining your team.
In a study from the Pew Research Center, 63% of respondents cited low pay as a key reason they left a job in 2021. It’s not surprising that people want higher pay. However, the survey also found that people without at least a four-year college degree typically identified multiple reasons for quitting, not just pay.
Additionally, most respondents who quit their jobs and found either full-time (55%) or part-time (23%) work say they’ve found more fulfilling work. Among these respondents, 56% said they were now earning more money, with more opportunities for promotion. Still, only around 42% of respondents said their employee benefits packages have improved, with 22% saying their benefits had worsened with the switch to a new company.
While salary issues topped the list for 2021, respondents left jobs for additional reasons, including the following:
a href=”/11167-what-to-do-if-underpaid.html”>Indications that an employee is being underpaid include a responsibility increase with no additional pay, a salary that doesn’t reflect specialized training or education, and pay that hasn’t been adjusted for inflation.
According to Gallup, employee turnover can cost up to 1.5 to two times the employee’s salary. That number can increase depending on the employee’s seniority. In addition to saving money, employee retention is essential for business growth and success.
Although there is no surefire way to keep employees from quitting, you can enact strategies to reduce employee turnover and keep effective teams intact.
High employee turnover isn’t great for a company in the long run – you’ll need to take money from your bottom line to train new hires. You can attract and retain top talent and keep experienced employees loyal if you know their motivations for staying at a job. Meet those expectations, and that’s less money out of your pocket – and a more effective team overall.
Adam Uzialko contributed to the reporting and writing in this article.